Community Discussions
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CMV: Stock markets are a zero sum game
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In simpler terms, for you to make money from stocks, other(s) have to lose the equivalent amount.
Let's say you buy $10K worth of XYZ company (which does not pay dividends). The stock price goes up 10% in the next few months. You sell for $11K. The $1K profit that you made has to come from somewhere (because you are not the Central Bank and you cannot money from thin air)
Did the $1K come from XYZ company? - NO - They paid exactly $0 to the shareholders
Did the $1K come from goods and services that XYZ made? - NO - Even if the goods and services they produced generated a profit, they shared exactly $0 of that profit with the shareholders
Did the $1K come from the exchange, brokers, or some other intermediary - NO - obviously
So the only place that $1K can come from, is from the pocket of other shareholders.
CMV
Note 1: IMO the zero sum argument is true for many things fiat currency, crypto currency, houses, food. However some of these have actual value for humans like houses and food. A share on the other hand, has no value until you sell it to someone.
Note 2: I am intentionally not including the role of inflation because that's how new mony comes into the system. However, even with inflation, everyone gets poorer by the same amount, and hence it still is zero sum.
Top Comment: Shares have value even if you don't sell them. Some play dividends, some give voting rights, and some are eligible for buybacks. If any of those apply, then the stock has inherent value that it can accrue over time, making it net positive.
How would you market with $0
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If someone told you to market a SAAS but you had no money that you can use for marketing.
How would you market it?
Want to see how creative yall can get
Top Comment:
Most early stage startups do this. Its not scalable but its doable if you have time.
- Find online industry communities - (LinkedIN, Reddit, FB, Insta, TikTok, X, etc. and engage with them, create pages and company profiles and engage using those handles) - use hashtags like crazy - they are free!
- Direct emails - find directories, web search, look for publicly listed emails or free email directories
- Find offline industry communities: Go to local events - most are free - network, chat get their email.
- Shamelessly ask for referrals mine your professional network - (best results in my case)
- Join an accelerator and they will give you intros to everyone in their rolodex or they will market for you.
Is beating the total stock market a zero-sum game?
Main Post: Is beating the total stock market a zero-sum game?
Fidelity ZERO Funds -- what's the catch?
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Hello everyone, this is my first post on this sub. At this point I believe I mostly understand and fully believe in this investment philosophy and the concept of the 3-fund portfolio.
For my Roth I use Fidelity, and of course, two of the three funds could be ZERO funds. I've read some of the other discussions on this sub about the ZERO funds, but they are pretty old and might no longer be accurate.
The way I see it, the only "catch" is that the Indexes which the zero funds track are not from a trusted third party, but proprietary to Fidelity (also a trusted org, of course, and the indexing method makes sense). Some also point out that the total market and total market international funds are not quite as diversified as the with-fee counterparts (2821 vs 4001 holdings for FZROX vs FSKAX) -- I was thinking that far down the order, the companies are a very tiny percent anyways. And finally the lack of portability outside which isn't an issue for Roth IRAs.
Am I missing anything? How do you all feel about these funds and would you entrust your retirement to them?
Top Comment: The catch is it is essentially advertising for them. They get you to use the fund then hopefully stay on their platform due to it. If it is in a taxable account you don’t want to trigger cap gains so you stay. In a tax advantaged account you want to stay because they are good funds, for free. That means you are more likely to use them for other things. They are great funds, my only hesitation would be in a taxable account.
Fidelity Zero* Expense Index Funds
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Has anyone used these? I use fidelity primarily. Are these funds better if there is really zero expense? What is the downside and why do most folks go with the vanguard funds VTI, VOO, VXUS, etc? Trying to learn.
Top Comment: downside is they cant be moved to another institution; so if you leave fidelity youll force a sale (non issue in IRA) the funds arent also as complete; the zero total market cuts off some of the smallest cap stocks: 2600 holdings vs 3700 (non issue imho) mutual funds still pass capital gains creating another taxable event (minor)
How do I market my business from Zero?
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Basically the title says it all, how can I learn to market my business from zero? What do I do? Where do I start? Good resources? I've started a company making accessories from motorcycles, I'm great at designing parts, but have ZERO experience marketing and growing a brand and company.
How do I create a marketing roadmap, plan, or strategy? What are the strategies for a brand new company since I assume they're different from an established company. What do I need to know? What helped you? What do you wish you knew?
Any help, advice, resources, anything at all will be so greatly appreciated!! Thanks in advance to everyone who responds.
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Downside of Fidelity zero funds?
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This may be a silly question, but I'm looking to better allocate a previously ignored Roth IRA account in fidelity, where the small amount of money is currently all in FNCMX. I'm seeing positive things about the Fidelity Zero funds, and am considering putting my new contributions into those, but is there some sort of downside I am missing? Some kind of issue that might come up down the line in exchange for the benefits of the zero expense ratio?
EDIT: Based on what seems to be few downsides in my case, is there a good reason I shouldn't sell the amount I currently have in FNCMX (and tiny amount I have in FTIHX) to switch to FZROX and FZILX instead? Or is it better to just leave it where it is for diversity's sake and focus on the new contributions? It seems like there isn't much harm in having things spread out, but I am not sure.
Top Comment: Hey there, u/drakwof . Thanks for dropping by, and welcome to the sub! We're more than happy to help point you in the right direction to learn more about the various funds we offer. Though it's totally your call what securities you wish to invest in, we have resources available so you can feel informed as you make your choices. One of the best resources to access is our screener tools to compare securities, listed under our "News & Research" dropdown and organized by type. Through each, you can research different investment products using criteria that are relevant to you, and compare up to five symbols side-by-side. That includes a screener tool for mutual funds. To unpack some details that may be useful, index funds are investment products that aim to replicate the performance of a particular market index. Fidelity ZERO funds specifically are Fidelity index mutual funds with zero expense ratios and no minimums to invest. Speaking of, we've got a great resource on Fidelity.com, which dives into ZERO funds in greater detail. I've linked it below, so feel free to add it to your toolbelt. Fidelity ZERO Index Funds Since we're here, we should discuss your Roth IRA. Specifically, what are the contribution limits for IRAs? I've got you covered. For 2024: if you are under age 50, you may contribute $7,000 a year. If you are age 50 or older, you may contribute $8,000 a year. That said, income limits and eligibility may affect how much you can contribute. We recommend checking out the link below to read more about the IRS limits to determine your eligibility to contribute to a Roth IRA. IRA Contribution Limits To get you started, you can also check out the article below which discusses a bit about what to consider when investing in an IRA. Investing Ideas for Your IRA Before I go, I'll make sure to mark this post as "Discussion" so the other excellent members of the community can visit the post to share their insight and experiences here. Since this is your first time visiting, remember we're here if you need us going forward! As always, don't hesitate to reach out if you have any future questions.
Is it true that is beating the market is a zero-sum game?
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Is it true that is beating the market is a zero-sum game?
I have seen the following quote:
Is it true that John Bogle said that?
Is it true that for every investor who earns above average, there is an investor who earns below average?
When considering outperforming the market, every outperformance implies an underperformance or loss elsewhere?
If the market did 10% this year and I did 20%, did I outperform someone else?
Therefore it is not possible for every investor this year to make 20% when the market did 10%?
Can we can think of the market as a cake of earnings, every year the cake's size is different according to the market performance and each investor gets a slice, when an investor gets a bigger than-average slice he takes someone else's part of the slice and when an investor takes an average size slice he therefore only takes his own slice and not someone's else?
So all the investors can decide to get a safe average size slice or try to compete over bigger than-average slice and get bigger or smaller slice?
Top Comment: If the market did 10% this year and I did 20%, did I outperform someone else? Well, yeah, but there's a huge concept here not considered: you are outperforming on a timescale. There are retail investors, pension funds, mutual funds, that just want to buy and hold onto a portfolio for a very, very long time. I can sell to them at a profit and the stock can tank tomorrow. For me, it is a great call. For them, it doesn't matter. Zero sum games are for players who are affected by the outcome at the same time. Markets are far from zero-sum games. It's kind of silly to even think that. It's more a limitation of our perception of the complexity of this global phenomenon, than a limitation of the phenomenon itself. But it can be zero-sum "locally", if both parties are trading on the same horizon or thereabouts. Day-traders are playing zero-sum games. Swing traders less so. Institutional investors are playing a game on a whole another plane of strategy.
Is marketing with 0$ budget is possible? : r/gamedev
Main Post: Is marketing with 0$ budget is possible? : r/gamedev
Zero fee S&P 500 fund?
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Hello,
Is FNILX OR FZROX a zero fee fund that tracks similarly to S&P 500? Or would it be better to just invest in FXAIX?
I am looking to reduce fees as much as possible while tracking the S&P 500 most closely.
Thank you.
Top Comment: Hello there, u/simonnnnc . Welcome to the sub! I see you have a specific question and a question for the community. Let's get you some answers. About the two funds you mention, at this moment: The Fidelity ZERO Large Cap Index Fund (FNILX) tracks the Fidelity U.S. Large Cap Index, a float-adjusted market capitalization-weighted index designed to reflect the performance of the U.S. equity market, including large-capitalization stocks. The Fidelity ZERO Total Market Index Fund (FZROX) tracks the Fidelity U.S. Total Investable Market Index, a float-adjusted market capitalization-weighted index designed to reflect the performance of the U.S. equity market, including large, mid, and small-capitalization stocks. You'll be able to learn more about these funds below. FNILX FZROX As for the best choice, I'll mark your post as a Discussion to invite the community members to share their thoughts. I will also add the following page as an additional research resource for you. We're raising the bar on value I'd also like to direct your attention to the daily discussion thread we've initiated for individuals seeking feedback on their portfolio, investment strategy, and related topics. This thread is pinned at the top of the "Hot" posts section and is labeled "Daily Discussion Thread (Rate My Portfolio, What Should I Buy/Change?, Investment Strategies, etc.) Please let us know if you have further questions. We'll be here to help!